On Wednesday, October 6, Twitter Inc announced that it has reached an agreement to sell MoPub, its mobile advertising network, to AppLovin Corporation, a California-based game developer and ad-tech firm, for $1.05 billion in cash.
The sale of MoPub will be used to create revenue-generating and promote growth on Twitter’s platform, in line with the company’s aim of doubling revenue to $7.5 billion by 2023, according to a press statement.
According to Twitter CEO Jack Dorsey, this transaction will increase Twitter’s focus and confidence in adhering to their revenue product road map, resulting in a faster ability for Twitter to “invest in the core products that position Twitter for long-term growth and best serve the public conversation.”
AppLovin Corporation shares soared more than 8% in extended trading on Wednesday following the announcement, while Twitter shares rose more than 2%. “The sale of MoPub is all about refocusing our resources, delivering quicker growth in a number of crucial areas,” says Bruce Flack, Twitter’s revenue product lead.
